Existing law prohibits a person from offering for sale or distribution, or otherwise entering into commerce in the state, bulk hydrofluorocarbons or bulk blends containing hydrofluorocarbons that exceed a specified global warming potential limit beginning January 1, 2025, and lower global warming potential limits beginning January 1, 2030, and January 1, 2033. Existing law exempts from that prohibition hydrofluorocarbons that are reclaimed, as defined under a specified federal regulation. Under existing law, a violation of these prohibitions is a crime.

This bill would eliminate the exemption for reclaimed hydrofluorocarbons and would instead create new exemptions for certain refrigerants, as specified. By eliminating the exemption for reclaimed hydrofluorocarbons, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law prohibits a person from offering for sale or distribution, or otherwise entering into commerce in the state, bulk hydrofluorocarbons or bulk blends containing hydrofluorocarbons that exceed a specified global warming potential limit beginning January 1, 2025, and lower global warming potential limits beginning January 1, 2030, and January 1, 2033. Existing law exempts from that prohibition hydrofluorocarbons that are reclaimed, as defined under a specified federal regulation. Under existing law, a violation of these prohibitions is a crime.

This bill would eliminate the exemption for reclaimed hydrofluorocarbons and would instead create new exemptions for certain refrigerants, as specified. By eliminating the exemption for reclaimed hydrofluorocarbons, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law prohibits a person from offering for sale or distribution, or otherwise entering into commerce in the state, bulk hydrofluorocarbons or bulk blends containing hydrofluorocarbons that exceed a specified global warming potential limit beginning January 1, 2025, and lower global warming potential limits beginning January 1, 2030, and January 1, 2033. Existing law exempts from that prohibition hydrofluorocarbons that are reclaimed, as defined under a specified federal regulation. Under existing law, a violation of these prohibitions is a crime.

This bill would eliminate the exemption for reclaimed hydrofluorocarbons and would instead create a new exemption for certified reclaimed refrigerants, as defined. new exemptions for certain refrigerants, as specified. By eliminating the exemption for reclaimed hydrofluorocarbons, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law prohibits a person from offering for sale or distribution, or otherwise entering into commerce in the state, bulk hydrofluorocarbons or bulk blends containing hydrofluorocarbons that exceed a specified global warming potential limit beginning January 1, 2025, and lower global warming potential limits beginning January 1, 2030, and January 1, 2033. Existing law exempts from that prohibition hydrofluorocarbons that are reclaimed, as defined under a specified federal regulation. Under existing law, a violation of these prohibitions is a crime.

This bill would eliminate the exemption for reclaimed hydrofluorocarbons and would instead create a new exemption for certified reclaimed refrigerants, as defined. By eliminating the exemption for reclaimed hydrofluorocarbons, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law prohibits a person from offering for sale or distribution, or otherwise entering into commerce in the state, bulk hydrofluorocarbons or bulk blends containing hydrofluorocarbons that exceed a specified global warming potential limit beginning January 1, 2025, and lower global warming potential limits beginning January 1, 2030, and January 1, 2033. Existing law exempts from that prohibition hydrofluorocarbons that are reclaimed, as defined under a specified federal regulation. Under existing law, a violation of these prohibitions is a crime.

This bill would eliminate the exemption for reclaimed hydrofluorocarbons and would instead create a new exemption for certified reclaimed refrigerants, as defined. By eliminating the exemption for reclaimed hydrofluorocarbons, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law prohibits a person from offering for sale or distribution, or otherwise entering into commerce in the state, bulk hydrofluorocarbons or bulk blends containing hydrofluorocarbons that exceed a specified global warming potential limit beginning January 1, 2025, and lower global warming potential limits beginning January 1, 2030, and January 1, 2033. Existing law exempts from that prohibition hydrofluorocarbons that are reclaimed, as defined under a specified federal regulation. Under existing law, a violation of these prohibitions is a crime.

This bill would eliminate the exemption for reclaimed hydrofluorocarbons and would instead create a new exemption for certified reclaimed refrigerants, as defined. By eliminating the exemption for reclaimed hydrofluorocarbons, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would declare that it is to take effect immediately as an urgency statute.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 663

Author:(McKinnor)

As Amended Ver:July 14, 2025

2/3 vote. Urgency

SUMMARY

Establishes standards for the allowable use of certified reclaimed refrigerants, as defined, as an exception to the existing prohibition on the sale or distribution of bulk hydrofluorocarbons (HFCs) that exceed specified global warming potential (GWP) limits.

Senate Amendments

1. Replace the term "virgin" with "new" to describe a HFC refrigerant that has not been previously used
2. Correct referenced definition for HFC.
3. Add a temporary exemption, until January 1, 2028, for HFCs exclusively for use in very low temperature refrigeration or cooling designed to maintain temperatures below -58 degrees Fahrenheit.

COMMENTS

Existing federal law directs USEPA to address HFC emissions by phasing down the production and consumption of HFCs by 85% by 2036. State law prohibits the sale, lease, rent, or otherwise entering into commerce of any equipment that uses a federally prohibited refrigerant or a refrigerant prohibited by the Air Resources Board (ARB) due to risk to human health or the environment. State law further prohibits the sale or distribution of bulk HFCs that exceed specified GWP limits, except for HFCs that are “reclaimed,” and requires ARB to initiate a rulemaking for the adoption of low and ultra-low GWP refrigerant alternatives in California in sectors where it is practicable.

Carbon dioxide (CO₂) remains in the atmosphere for centuries, which makes it the most critical GHG to reduce in order to limit long-term climate change. However, short-lived climate pollutants (SLCPs) including HFCs, methane, and soot (black carbon), only persist in the atmosphere from a few weeks to 15 years, but have much higher GWP than CO₂, and therefore pose a significant threat to meeting climate goals.

SB 1383 (Lara), Chapter 395, Statutes of 2016, requires reductions of HFCs (also known as F-gases) which are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. HFCs, on average, have a global warming potential 1600 times that of CO₂ on a 20-year time scale, and are increasing at a more rapid pace than any other GHG in the U.S., and increasing 10-15% annually around the globe. SB 1383 requires reductions of HFCs 40 percent below 2013 levels by 2030.

Class I and Class II refrigerants are Ozone-Depleting Substances (ODS), and Class II ODSs have less ozone depletion potential than Class Is. HFCs were initially developed as Class II alternatives to Class I ODSs due to their lower ozone depletion potential. HFCs are subject to the Montreal Protocol, adopted in 1987 to address the depletion of the ozone layer, which requires incremental HFC phase-out, culminating with complete replacement by 2030.

The USEPA Significant New Alternatives Policy (SNAP) program was established under Section 612 of the federal Clean Air Act to identify and evaluate substitutes for ozone depleting substances. Under SNAP, US EPA Rules adopted in 2015 effectively banned 38 HFCs across the aerosol, new car air conditioning, retail food refrigeration, and foam blowing sectors, but a 2017 federal court ruling reversed these rules, finding that the FCAA does not authorize the replacement of non ODSs, including some HFCs, to address climate change concerns.

SB 1013 (Lara), Chapter 375, Statutes of 2018, adopted analogous HFC regulations in state law and offers financial incentives to assist businesses with technology transition.

SB 1206 (Skinner), Chapter 884, Statutes of 2022, prohibited the sale or distribution of bulk HFCs that exceed GWP limits of 2,200 by 2025, 1,500 by 2030, and 750 by 2033. SB 1206 requires the use of reclaimed HFCs when replenishing leaks or servicing equipment with HFCs with GWP greater than 750.

According to the Author

Hydrofluorocarbons have been found to have a dramatic negative impact on air quality and climate change when released into the atmosphere. These gases, called "HFCs," are used in a variety of applications, including aerosols, refrigeration and air conditioning, among others. Leaks from air conditioning and refrigeration units are a major source of harmful emissions. It is estimated that an average grocery store refrigeration system leaking 25% of its total refrigerant charge results in an average of 1,780 metric tons of carbon dioxide equivalent, or emissions from nearly 400 passenger cars.

SB 1206 of 2022 was passed with the intent of furthering the State's goal to reduce the impact and use of hydrofluorocarbon gases in California. The bill limited the use of HFCs with specified global warming potential in equipment owned or operated by the state by requiring the use of reclaimed HFCs to replenish leaks for any stationary equipment using HFCs that pose specified levels of risk.

Under SB 1383 of 2016, the state is required to reduce short-lived climate pollutants 40% below 2013 levels by 2030. SB 1206 of 2022 furthers that goal by placing requirements on stationary system units owned or operated by the State. The issue for small businesses, individuals and the state is they have made an investment in cooling units that use HFCs, and such units have both an economic and performance lifecycle requiring the responsible recapturing of this material to prevent it from harming the environment.

AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state’s air quality and emission reduction goals.

Arguments in Support

According to Hudson Technologies, AB 663 provides a clear definition of "reclaimed" by referring to federal standards that exist in law and are well understood by all players in the sector. The federal standard calls for at least 85% of the HFCs to be reclaimed to be labeled as such. This bill refers to that standard, thereby giving the State of California clear direction in implementing and meeting the requirements intended by SB 1206.

Arguments in Opposition

None received.

FISCAL COMMENTS

According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

VOTES:

ASM NATURAL RESOURCES: 14-0-0

YES: Bryan, Alanis, Connolly, Ellis, Flora, Garcia, Haney, Hoover, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

ASSEMBLY FLOOR: 77-0-2

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Garcia, Stefani

SENATE FLOOR: 40-0-0

YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener

UPDATED

VERSION: July 14, 2025

CONSULTANT: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0001600

 THIRD READING  

Bill No: AB 663

Author: McKinnor (D)

Amended: 7/14/25 in Senate

Vote: 27 - Urgency

SENATE ENVIRONMENTAL QUALITY COMMITTEE: 6-0, 6/18/25

AYES: Blakespear, Valladares, Dahle, Hurtado, Menjivar, Pérez

NO VOTE RECORDED: Gonzalez, Padilla

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 77-0, 5/12/25 - See last page for vote

SUBJECT: Hydrofluorocarbon gases: sale and distribution prohibition: exemptions

SOURCE: Hudson Technologies

DIGEST:

This bill eliminates a reference to one set of federal regulations and replaces it with a reference to a different federal regulation to ensure reclaimed hydrofluorocarbons (HFCs) used in the state contain no more than 15% virgin HFCs.

Senate Floor Amendments of 7/14/25 make technical word changes and alter a reference to a federal regulation.

ANALYSIS:

Existing federal regulations:

1) Define, under the federal Clean Air Act, a reclaimed refrigerant based on a “level of purity” test to ensure it is free from certain contaminants, but this definition is not related to whether the refrigerant is recycled.

2) Prohibit, under the federal American Innovation and Manufacturing (AIM) Act of 2020, a person from claiming a refrigerant has been “reclaimed” or recycled if it contains more than 15%, by weight, of virgin material (Code of Federal Regulations Title 40: Chapter I: Subchapter C; Part 84: Subpart C: 84.112 (a)).

Existing state law:

1) Defines “hydrofluorocarbons” (HFCs) as fluorinated gases used primarily as refrigerants in refrigeration, air-conditioning equipment, foam expansion agents, aerosol propellants, solvents, and fire suppressants (Health & Safety Code (HSC) §39734).

2) Defines “global warming potential” (GWP) as a measure of how much energy the emissions of one ton of a gas will absorb over a given period of time, relative to the emissions of one ton of carbon dioxide (CO2) (HSC §39735).

3) Precludes a person from selling or distributing bulk HFCs or bulk blends containing HFCs that exceed a GWP of 2,200 as of January 1, 2025, a GWP or

1,500 as of January 1, 2030, and a GWP of 750 as of January 1, 2033 (HSC §39735).

4) Precludes, as of January 1, 2025, HFCs with a GWP greater than 750 that are not reclaimed from being used to replenish any leaks or to service stationary equipment owned or operated by the state (HSC §39735).

5) Exempts from the prohibition in (3) HFCs that are reclaimed (as defined by the federal Clean Air Act, not the AIM Act) and HFCs used exclusively in metered dose inhalers approved by the United States Food and Drug Administration for medical purposes (though this second exemption expires on December 27, 2030) (HSC §39735).

This bill:

1) Eliminates the exemption for “reclaimed hydrofluorocarbons” as defined under federal regulation found in the federal Clean Air Act (which relies on a purity standard) and replaces it with a new exemption for a “certified reclaimed refrigerant,” which this bill defines as used refrigerant that:

a) Has been reclaimed by a refrigerant reclaimer certified by the United States Environmental Protection Agency (U.S. EPA) from a previously used appliance;

b) Meets all specifications of regulations developed under the AIM Act that are found in Appendix A to Subpart F (commencing with Section 82.150) of Part 82 of Title 40 of the Code of Federal Regulations, as those regulations existed as of October 1, 2024, as demonstrated by an analysis conducted to verify that it meets these specifications; and

c) Contains no more than 15% virgin HFC refrigerant by weight.

2) Defines a “virgin HFC refrigerant” as HFC refrigerant that has not been previously used.

3) Exempts “certified reclaimed refrigerant” from the current law prohibition on using unreclaimed HFCs with a GWP greater than 750 to replenish any leaks or to service stationary equipment owned or operated by the state.

Background

1) Global Warming Potential. Global warming potential, or GWP, is a relative measure of how much energy one ton of a greenhouse gas (GHG) traps in the atmosphere when compared to a one ton of CO2. The GWP of CO2 is standardized to one, so any GHG will be above one and the higher the number, the worse the GHG is for the environment because it means it will likely trap that much more energy (heat) in the atmosphere over a given time frame.

GWP is typically calculated over a specific time interval, commonly 20, 100, or 500 years and the California Air Resources Board (CARB) uses GWPs calculated by the Intergovernmental Panel on Climate Change (IPCC) that are considered over a 100-year timeframe.

Here’s an example to illustrate how GWP works: CFC-11, or trichlorofluoromethane, is a chlorofluorocarbon that was once widely used as a refrigerant, aerosol propellant, and foam-blowing agent. It has a GWP of 5,000 – meaning when comparing one ton of CFC-11 to one ton of CO2, the CFC-11 will trap 5,000 times more energy in the atmosphere than CO2 over a 100-year timeframe.

2) Hydrofluorocarbons 101. Hydrofluorocarbons, better known as HFCs, are used in a number of different places in our society, most notably in refrigerators and air conditioning units, and comprise approximately 10% of California’s GHG emissions.

HFCs are man-made chemical organic compounds that contain fluorine and hydrogen atoms and are usually a gas at room temperature. They are short-lived pollutants with high GWP potential and when released into the atmosphere, they absorb outgoing infrared radiation which traps heat in the atmosphere and contributes to global warming. They usually have a much shorter life (on average 15 years) in the atmosphere than CO2 (100s of years) – but despite their short lifespan, one molecule of HFC will absorb significantly much more infrared energy than CO2 because of its carbon-fluorine bonds. Most HFCs have GWPs in the 1,000s – meaning that every ton of HFCs emitted is equal to releasing 1,000 tons or more of CO2 for the purposes of global warming.

According to CARB, “Fluorinated gases – especially HFCs – are the fastest-growing source of GHG emissions both in California and globally. More than three-quarters of HFC emissions in California come from the use of refrigerants in the commercial, industrial, residential, and transportation sectors.”

3) SB 1206 (Skinner, Chapter 884, Statutes of 2022). SB 1206 limited the use of HFCs in equipment owned or operated by the state by requiring reclaimed – not virgin – HFCs be used to replenish leaks in any stationary equipment using HFCs. Properly reclaimed materials can be treated and reused to help avoid the production of new HFCs while also making older units more efficient.

4) Two Federal Definitions of “Reclaimed.” SB 1206 relied on the definition of “reclaimed” found in federal regulations created under the federal Clean Air Act and incorporated it into state law by reference. That definition states a reclaimed refrigerant is based on a “level of purity” test to ensure it is free from certain contaminants – something that is unrelated to whether the refrigerant is recycled or reclaimed.

That is in contrast with the federal definition created by the U.S. EPA pursuant to the AIM Act of 2020 that a “reclaimed HFC” is one that contains no more than 15% virgin materials.

Comments

1) Purpose of this bill. According to the author, “Hydrofluorocarbons have been found to have a dramatic negative impact on air quality and climate change when released into the atmosphere. These gases, called ‘HFCs,’ are used in a variety of applications, including aerosols, refrigeration and air conditioning, among others.

“AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state’s air quality and emission reduction goals.”

2) Using The Right Definition To Promote HFC Reclamation and Recycling. As noted in the “Background” section, state law references a definition of “reclaimed” in the federal codes that – because it is based on a level of purity, not a level of reclaimed or recycled HFCs – may or may not lead to an increase in HFC reclamation and a decrease in the use of virgin HFCs.

This bill eliminates the reference to the federal “purity standard” regulation established under the federal Clean Air Act and replaces it with a reference to the definition of “reclaimed” found in the regulations developed under AIM as those regulations existed on October 1, 2024, which define “reclaimed” as containing no more that 15% virgin materials.

By referring to the regulations as they existed at a certain point in time, it ensures any future changes to those regulations will have no impact in California that could – due to an increased use of reclaimed HFCs that don’t meet the current 85% reclaimed/15% virgin standard – increase the level of GHG emissions in the state and undermine California’s ability to meet its GHG reduction goals.

Related/Prior Legislation

SB 1013 (Lara, Chapter 375, Statutes of 2018), adopted analogous HFC regulations in state law and offered financial incentives to help businesses transition to the use of reclaimed HFCs.

SB 1206 (Skinner, Chapter 884, Statutes of 2022), prohibited the sale or distribution of bulk HFCs that exceed GWP limits of 2,200 by 2025, 1,500 by 2030, and 750 by 2033. SB 1206 requires the use of reclaimed HFCs when replenishing leaks or servicing equipment with HFCs with GWP greater than 750.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 7/15/25)

Hudson Technologies (Sponsor)

350 Humboldt: Grassroots Climate Action

California Product Stewardship Council

Californians Against Waste

Coalition for Clean Air

National Stewardship Action Council

OPPOSITION: (Verified 7/15/25)

None received

ARGUMENTS IN SUPPORT: According to this bill’s sponsor, Hudson Technologies:

“Leaks from air conditioning and refrigeration units are a major source of emissions. It is estimated that an average grocery store refrigeration system leaking 25 percent of its total refrigerant charge results in an average of 1,780 metric tons of carbon dioxide equivalent, or emissions from nearly 400 passenger cars.

“AB 663 seeks to build upon SB 1206 (Skinner) of 2022, which sought to reduce the impact and use of HFCs in California. The bill limited the use of HFCs with specified global warming potential in state facilities by requiring the use of reclaimed HFCs to replenish leaks. However, the bill did not specifically define what levels of reclaimed materials meet the standard.

“AB 663 provides a clear definition of “reclaimed” by referring to federal standards that exist in law and are well understood by all players in the sector. The federal standard calls for at least 85 percent of the HFCs to be reclaimed to be labeled as such. This bill refers to that standard, thereby giving the State of California clear direction in implementing and meeting the requirements intended by SB 1206.”

ARGUMENTS IN OPPOSITION:

None received.

ASSEMBLY FLOOR: 77-0, 5/12/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Garcia, Stefani

Prepared by: Evan Goldberg / E.Q. / (916) 651-4108.

7/15/25 16:21:42

**** END ****

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Blakespear, Chair

2025 - 2026 Regular

Bill No: AB 663

SUBJECT: Hydrofluorocarbon gases: sale and distribution prohibition: exemptions

DIGEST: Eliminates a reference to one set of federal regulations and replaces it with a reference to a different federal regulation to ensure reclaimed hydrofluorocarbons (HFCs) used in the state contain no more than 15% virgin HFCs.

ANALYSIS:

Existing federal regulations:

1) Define, under the federal Clean Air Act, a reclaimed refrigerant based on a “level of purity” test to ensure it is free from certain contaminants, but this definition is not related to whether the refrigerant is recycled.

2) Prohibit, under the federal American Innovation and Manufacturing (AIM) Act of 2020, a person from claiming a refrigerant has been “reclaimed” or recycled if it contains more than 15%, by weight, of virgin material (CFR Title 40: Chapter I: Subchapter C; Part 84: Subpart C: 84.112 (a)).

Existing state law:

1. Defines “hydrofluorocarbons” (HFCs) as fluorinated gases used primarily as refrigerants in refrigeration, air-conditioning equipment, foam expansion agents, aerosol propellants, solvents, and fire suppressants (Health & Safety Code (HSC) §39734).
2. Defines “global warming potential” (GWP) as a measure of how much energy the emissions of one ton of a gas will absorb over a given period of time, relative to the emissions of one ton of carbon dioxide (CO2) (HSC §39735).
3. Precludes a person from selling or distributing bulk HFCs or bulk blends containing HFCs that exceed a GWP of 2,200 as of January 1, 2025, a GWP or 1,500 as of January 1, 2030, and a GWP of 750 as of January 1, 2033 (HSC §39735).
4. Precludes, as of January 1, 2025, HFCs with a GWP greater than 750 that are not reclaimed from being used to replenish any leaks or to service stationary equipment owned or operated by the state (HSC §39735).
5. Exempts from the prohibition in (3) HFCs that are reclaimed (as defined by the federal Clean Air Act, not the AIM Act) and HFCs used exclusively in metered dose inhalers approved by the United States Food and Drug Administration for medical purposes (though this second exemption expires on December 27, 2030) (HSC §39735).

This bill:

1. Eliminates the exemption for “reclaimed hydrofluorocarbons” as defined under federal regulation found in the federal Clean Air Act (which relies on a purity standard) and replaces it with a new exemption for a “certified reclaimed refrigerant,” which the bill defines as used refrigerant that:
   1. Has been reclaimed by a refrigerant reclaimer certified by the United States Environmental Protection Agency (U.S. EPA) from a previously used appliance;
   2. Meets all specifications of regulations developed under the AIM Act that are found in Appendix A to Subpart F (commencing with Section 82.150) of Part 82 of Title 40 of the Code of Federal Regulations, as those regulations existed as of October 1, 2024, as demonstrated by an analysis conducted to verify that it meets these specifications; and
   3. Contains no more than 15% virgin HFC refrigerant by weight.
2. Defines a “virgin HFC refrigerant” as HFC refrigerant that has not been previously used.
3. Exempts “certified reclaimed refrigerant” from the current law prohibition on using unreclaimed HFCs with a GWP greater than 750 to replenish any leaks or to service stationary equipment owned or operated by the state.
   

Background

1. Global Warming Potential. Global warming potential, or GWP, is a relative measure of how much energy one ton of a GHG traps in the atmosphere when compared to a one ton of CO2. The GWP of CO2 is standardized to one, so any GHG will be above one and the higher the number, the worse the GHG is for the environment because it means it will likely trap that much more energy (heat) in the atmosphere over a given time frame.

GWP is typically calculated over a specific time interval, commonly 20, 100, or 500 years and the California Air Resources Board (CARB) uses GWPs calculated by the Intergovernmental Panel on Climate Change (IPCC) that are considered over a 100-year timeframe.

Here’s an example to illustrate how GWP works: CFC-11, or trichlorofluoromethane, is a chlorofluorocarbon that was once widely used as a refrigerant, aerosol propellant, and foam-blowing agent. It has a GWP of 5,000 – meaning when comparing one ton of CFC-11 to one ton of CO2, the CFC-11 will trap 5,000 times more energy in the atmosphere than CO2 over a 100-year timeframe.

1. Hydrofluorocarbons 101. Hydrofluorocarbons, better known as HFCs, are used in a number of different places in our society, most notably in refrigerators and air conditioning units, and comprise approximately 10% of California’s greenhouse gas (GHG) emissions.

HFCs are man-made chemical organic compounds that contain fluorine and hydrogen atoms and are usually a gas at room temperature. They are short-lived pollutants with high GWP potential and when released into the atmosphere, they absorb outgoing infrared radiation which traps heat in the atmosphere and contributes to global warming. They usually have a much shorter life (on average 15 years) in the atmosphere than CO2 (100s of years) – but despite their short lifespan, one molecule of HFC will absorb significantly much more infrared energy than CO2 because of its carbon-fluorine bonds. Most HFCs have GWPs in the 1,000s – meaning that every ton of HFCs emitted is equal to releasing 1,000 tons or more of CO2 for the purposes of global warming.

According to CARB, “Fluorinated gases – especially HFCs – are the fastest-growing source of GHG emissions both in California and globally. More than three-quarters of HFC emissions in California come from the use of refrigerants in the commercial, industrial, residential, and transportation sectors.”

1. SB 1206 (Skinner, 2022). SB 1206 limited the use of HFCs in equipment owned or operated by the state by requiring reclaimed – not virgin – HFCs be used to replenish leaks in any stationary equipment using HFCs. Properly reclaimed materials can be treated and reused to help avoid the production of new HFCs while also making older units more efficient.
2. Two Federal Definitions of “Reclaimed.” SB 1206 relied on the definition of “reclaimed” found in federal regulations created under the federal Clean Air Act and incorporated it into state law by reference. That definition states a reclaimed refrigerant is based on a “level of purity” test to ensure it is free from certain contaminants – something that is unrelated to whether the refrigerant is recycled or reclaimed.

That is in contrast with the federal definition created by the U.S. EPA pursuant to the AIM Act of 2020 that a “reclaimed HFC” is one that contains no more than 15% virgin materials.

Comments

1. Purpose of Bill. According to the author, “Hydrofluorocarbons have been found to have a dramatic negative impact on air quality and climate change when released into the atmosphere. These gases, called ‘HFCs,’ are used in a variety of applications, including aerosols, refrigeration and air conditioning, among others.

“AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state’s air quality and emission reduction goals.”

1. Using The Right Definition To Promote HFC Reclamation and Recycling. As noted in the “Background” section, state law references a definition of “reclaimed” in the federal codes that – because it is based on a level of purity, not a level of reclaimed or recycled HFCs – may or may not lead to an increase in HFC reclamation and a decrease in the use of virgin HFCs.

This bill eliminates the reference to the federal “purity standard” regulation established under the federal Clean Air Act and replaces it with a reference to the definition of “reclaimed” found in the regulations developed under AIM as those regulations existed on October 1, 2024, which define “reclaimed” as containing no more that 15% virgin materials.

By referring to the regulations as they existed at a certain point in time, it ensures any future changes to those regulations will have no impact in California that could – due to an increased use of reclaimed HFCs that don’t meet the current 85% reclaimed/15% virgin standard – increase the level of GHG emissions in the state and undermine California’s ability to meet its GHG reduction goals.

Related/Prior Legislation

SB 1013 (Lara), Chapter 375, Statutes of 2018, adopted analogous HFC regulations in state law and offered financial incentives to help businesses transition to the use of reclaimed HFCs.

SB 1206 (Skinner), Chapter 884, Statutes of 2022, prohibited the sale or distribution of bulk HFCs that exceed GWP limits of 2,200 by 2025, 1,500 by 2030, and 750 by 2033. SB 1206 requires the use of reclaimed HFCs when replenishing leaks or servicing equipment with HFCs with GWP greater than 750.

Prior Actions

Assembly Natural Resources Committee: 14-0

Assembly Appropriation Committee: 15-0

Assembly Floor: 77-0

SOURCE:

Hudson Technologies

SUPPORT:

California Product Stewardship Council
National Stewardship Action Council

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 663

Author:(McKinnor)

As Amended Ver:May 6, 2025

2/3 vote. Urgency

SUMMARY

Establishes standards for the allowable use of certified reclaimed refrigerants, as defined, as an exception to the existing prohibition on the sale or distribution of bulk hydrofluorocarbons (HFCs) that exceed specified global warming potential (GWP) limits.

Major Provisions

1. Specifies that definitions in the federal regulations regarding phasedown of HFCs are as the regulation existed on October 1, 2024.
2. Establishes a more detailed definition of ′″certified reclaimed refrigerant,′″ meaning a used (recovered) refrigerant that meets all the following criteria:
   1. Has been reclaimed by a U.S. Environmental Protection Agency (USEPA) certified refrigerant reclaimer from a previously operational appliance.
   2. Meets specified specifications for refrigerants in federal regulations, as demonstrated by an analysis conducted to verify that it meets these specifications.
   3. Contains no greater than 15 percent virgin (unused) refrigerant by weight to meet the federal refrigerant specifications, and has documentation prepared by a USEPA certified refrigerant reclaimer that supports that the reclaimed refrigerant does not exceed the maximum allowable virgin refrigerant content.
3. Is an urgency statute.

COMMENTS

Existing federal law directs USEPA to address HFC emissions by phasing down the production and consumption of HFCs by 85% by 2036. State law prohibits the sale, lease, rent, or otherwise entering into commerce of any equipment that uses a federally prohibited refrigerant or a refrigerant prohibited by the Air Resources Board (ARB) due to risk to human health or the environment. State law further prohibits the sale or distribution of bulk HFCs that exceed specified GWP limits, except for HFCs that are ′″reclaimed,′″ and requires ARB to initiate a rulemaking for the adoption of low and ultra-low GWP refrigerant alternatives in California in sectors where it is practicable.

Carbon dioxide (CO₂) remains in the atmosphere for centuries, which makes it the most critical GHG to reduce in order to limit long-term climate change. However, short-lived climate pollutants (SLCPs) including HFCs, methane, and soot (black carbon), only persist in the atmosphere from a few weeks to 15 years, but have much higher GWP than CO₂, and therefore pose a significant threat to meeting climate goals.

SB 1383 (Lara), Chapter 395, Statutes of 2016, requires reductions of HFCs (also known as F-gases) which are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. HFCs, on average, have a global warming potential 1600 times that of CO₂ on a 20-year time scale, and are increasing at a more rapid pace than any other GHG in the U.S., and increasing 10-15% annually around the globe. SB 1383 requires reductions of HFCs 40% below 2013 levels by 2030.

Class I and Class II refrigerants are Ozone-Depleting Substances (ODS), and Class II ODSs have less ozone depletion potential than Class Is. HFCs were initially developed as Class II alternatives to Class I ODSs due to their lower ozone depletion potential. HFCs are subject to the Montreal Protocol, adopted in 1987 to address the depletion of the ozone layer, which requires incremental HFC phase-out, culminating with complete replacement by 2030.

The USEPA Significant New Alternatives Policy (SNAP) program was established under Section 612 of the federal Clean Air Act to identify and evaluate substitutes for ozone depleting substances. Under SNAP, US EPA Rules adopted in 2015 effectively banned 38 HFCs across the aerosol, new car air conditioning, retail food refrigeration, and foam blowing sectors, but a 2017 federal court ruling reversed these rules, finding that the FCAA does not authorize the replacement of non ODSs, including some HFCs, to address climate change concerns.

SB 1013 (Lara), Chapter 375, Statutes of 2018, adopted analogous HFC regulations in state law and offers financial incentives to assist businesses with technology transition.

SB 1206 (Skinner), Chapter 884, Statutes of 2022, prohibited the sale or distribution of bulk HFCs that exceed GWP limits of 2,200 by 2025, 1,500 by 2030, and 750 by 2033. SB 1206 requires the use of reclaimed HFCs when replenishing leaks or servicing equipment with HFCs with GWP greater than 750.

According to the Author

Hydrofluorocarbons have been found to have a dramatic negative impact on air quality and climate change when released into the atmosphere. These gases, called ′″HFCs,′″ are used in a variety of applications, including aerosols, refrigeration and air conditioning, among others. Leaks from air conditioning and refrigeration units are a major source of harmful emissions. It is estimated that an average grocery store refrigeration system leaking 25 percent of its total refrigerant charge results in an average of 1,780 metric tons of carbon dioxide equivalent, or emissions from nearly 400 passenger cars.

SB 1206 of 2022 was passed with the intent of furthering the State’s goal to reduce the impact and use of hydrofluorocarbon gases in California. The bill limited the use of HFCs with specified global warming potential in equipment owned or operated by the state by requiring the use of reclaimed HFCs to replenish leaks for any stationary equipment using HFCs that pose specified levels of risk.

Under SB 1383 of 2016, the state is required to reduce short-lived climate pollutants 40 percent below 2013 levels by 2030. SB 1206 of 2022 furthers that goal by placing requirements on stationary system units owned or operated by the State. The issue for small businesses, individuals and the state is they have made an investment in cooling units that use HFCs, and such units have both an economic and performance lifecycle requiring the responsible recapturing of this material to prevent it from harming the environment.

AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state’s air quality and emission reduction goals.

Arguments in Support

According to Hudson Technologies, AB 663 provides a clear definition of ′″reclaimed′″ by referring to federal standards that exist in law and are well understood by all players in the sector. The federal standard calls for at least 85 percent of the HFCs to be reclaimed to be labeled as such. This bill refers to that standard, thereby giving the State of California clear direction in implementing and meeting the requirements intended by SB 1206.

Arguments in Opposition

None received.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, minor and absorbable, if any, costs to ARB.

VOTES

ASM NATURAL RESOURCES: 14-0-0

YES: Bryan, Alanis, Connolly, Ellis, Flora, Garcia, Haney, Hoover, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

UPDATED

VERSION: May 6, 2025

CONSULTANT: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0000342

ASSEMBLY THIRD READING

ATR Bill Id:AB 663

Author:(McKinnor)

As Amended Ver:March 28, 2025

2/3 vote. Urgency

SUMMARY

Establishes standards for the allowable use of certified reclaimed refrigerants, as defined, as an exception to the existing prohibition on the sale or distribution of bulk hydrofluorocarbons (HFCs) that exceed specified global warming potential (GWP) limits.

Major Provisions

1. Specifies that definitions in the federal regulations regarding phasedown of HFCs are as the regulation existed on October 1, 2024.
2. Establishes a more detailed definition of "certified reclaimed refrigerant," meaning a used (recovered) refrigerant that meets all the following criteria:
   1. Has been reclaimed by a U.S. Environmental Protection Agency (USEPA) certified refrigerant reclaimer from a previously operational appliance.
   2. Meets specified specifications for refrigerants in federal regulations, as demonstrated by an analysis conducted to verify that it meets these specifications.
   3. Contains no greater than 15% virgin (unused) refrigerant by weight to meet the federal refrigerant specifications, and has documentation prepared by a USEPA certified refrigerant reclaimer that supports that the reclaimed refrigerant does not exceed the maximum allowable virgin refrigerant content.
3. Is an urgency statute.

COMMENTS

Existing federal law directs USEPA to address HFC emissions by phasing down the production and consumption of HFCs by 85% by 2036. State law prohibits the sale, lease, rent, or otherwise entering into commerce of any equipment that uses a federally prohibited refrigerant or a refrigerant prohibited by the Air Resources Board (ARB) due to risk to human health or the environment. State law further prohibits the sale or distribution of bulk HFCs that exceed specified GWP limits, except for HFCs that are "reclaimed," and requires ARB to initiate a rulemaking for the adoption of low and ultra-low GWP refrigerant alternatives in California in sectors where it is practicable.

Carbon dioxide (CO₂) remains in the atmosphere for centuries, which makes it the most critical GHG to reduce in order to limit long-term climate change. However, short-lived climate pollutants (SLCPs) including HFCs, methane, and soot (black carbon), only persist in the atmosphere from a few weeks to 15 years, but have much higher GWP than CO₂, and therefore pose a significant threat to meeting climate goals.

SB 1383 (Lara), Chapter 395, Statutes of 2016, requires reductions of HFCs (also known as F-gases) which are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. HFCs, on average, have a global warming potential 1600 times that of CO₂ on a 20-year time scale, and are increasing at a more rapid pace than any other GHG in the U.S., and increasing 10-15% annually around the globe. SB 1383 requires reductions of HFCs 40% below 2013 levels by 2030.

Class I and Class II refrigerants are Ozone-Depleting Substances (ODS), and Class II ODSs have less ozone depletion potential than Class Is. HFCs were initially developed as Class II alternatives to Class I ODSs due to their lower ozone depletion potential. HFCs are subject to the Montreal Protocol, adopted in 1987 to address the depletion of the ozone layer, which requires incremental HFC phase-out, culminating with complete replacement by 2030.

The USEPA Significant New Alternatives Policy (SNAP) program was established under Section 612 of the federal Clean Air Act to identify and evaluate substitutes for ozone depleting substances. Under SNAP, US EPA Rules adopted in 2015 effectively banned 38 HFCs across the aerosol, new car air conditioning, retail food refrigeration, and foam blowing sectors, but a 2017 federal court ruling reversed these rules, finding that the FCAA does not authorize the replacement of non ODSs, including some HFCs, to address climate change concerns.

SB 1013 (Lara), Chapter 375, Statutes of 2018, adopted analogous HFC regulations in state law and offers financial incentives to assist businesses with technology transition.

SB 1206 (Skinner), Chapter 884, Statutes of 2022, prohibited the sale or distribution of bulk HFCs that exceed GWP limits of 2,200 by 2025, 1,500 by 2030, and 750 by 2033. SB 1206 requires the use of reclaimed HFCs when replenishing leaks or servicing equipment with HFCs with GWP greater than 750.

According to the Author

Hydrofluorocarbons have been found to have a dramatic negative impact on air quality and climate change when released into the atmosphere. These gases, called "HFCs," are used in a variety of applications, including aerosols, refrigeration and air conditioning, among others. Leaks from air conditioning and refrigeration units are a major source of harmful emissions. It is estimated that an average grocery store refrigeration system leaking 25% of its total refrigerant charge results in an average of 1,780 metric tons of carbon dioxide equivalent, or emissions from nearly 400 passenger cars.

SB 1206 of 2022 was passed with the intent of furthering the State's goal to reduce the impact and use of hydrofluorocarbon gases in California. The bill limited the use of HFCs with specified global warming potential in equipment owned or operated by the state by requiring the use of reclaimed HFCs to replenish leaks for any stationary equipment using HFCs that pose specified levels of risk.

Under SB 1383 of 2016, the state is required to reduce short-lived climate pollutants 40% below 2013 levels by 2030. SB 1206 of 2022 furthers that goal by placing requirements on stationary system units owned or operated by the State. The issue for small businesses, individuals and the state is they have made an investment in cooling units that use HFCs, and such units have both an economic and performance lifecycle requiring the responsible recapturing of this material to prevent it from harming the environment.

AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state's air quality and emission reduction goals.

Arguments in Support

According to Hudson Technologies, AB 663 provides a clear definition of "reclaimed" by referring to federal standards that exist in law and are well understood by all players in the sector. The federal standard calls for at least 85% of the HFCs to be reclaimed to be labeled as such. This bill refers to that standard, thereby giving the State of California clear direction in implementing and meeting the requirements intended by SB 1206.

Arguments in Opposition

None received.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, minor and absorbable, if any, costs to ARB.

VOTES

ASM NATURAL RESOURCES: 14-0-0

YES: Bryan, Alanis, Connolly, Ellis, Flora, Garcia, Haney, Hoover, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

UPDATED

VERSION: March 28, 2025

CONSULTANT: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0000307

Date of Hearing: April 23, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 663

Author:(McKinnor) – As Amended Ver:March 28, 2025

Urgency: Yes State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill establishes standards for the allowable use of certified reclaimed refrigerants, as defined, as an exception to the existing prohibition on the sale or distribution of bulk hydrofluorocarbons (HFCs) that exceed specified global warming potential (GWP) limits.

Specifically, this bill, among other things:

1. Provides that specified definitions in the federal regulations regarding the phasedown of HFCs are as the regulation existed on October 1, 2024.
2. Establishes a more detailed definition of “certified reclaimed refrigerant,” meaning a used (recovered) refrigerant that meets all the following criteria:
   1. Has been reclaimed by a refrigerant reclaimer certified by the U.S. Environmental Protection Agency (U.S. EPA) from a previously operational appliance.
   2. Meets certain specifications for refrigerants in federal regulations, as demonstrated by an analysis conducted to verify that it meets these specifications.
   3. Contains no greater than 15% virgin (unused) refrigerant by weight to meet the federal refrigerant specifications, and has documentation prepared by a refrigerant reclaimer certified by U.S. EPA that supports that the reclaimed refrigerant does not exceed the maximum allowable virgin refrigerant content.

FISCAL EFFECT:

Minor and absorbable, if any, costs to the Air Resources Board.

COMMENTS:

1) Purpose. According to the author:

AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state’s air quality and emission reduction goals.

2) Background. SB 1383 (Lara), Chapter 395, Statutes of 2016, requires reductions of HFCs, which are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. HFCs, on average, have a global warming potential 1,600 times that of CO₂ on a 20-year time scale and are increasing at a more rapid pace than any other greenhouse gas (GHG) in the U.S. SB 1383 requires reductions of HFCs by 40% below 2013 levels by 2030. SB 1206 (Skinner), Chapter 884, Statutes of 2022, limited the use of HFCs with specified GWPs in equipment owned or operated by the state by requiring the use of reclaimed HFCs to replenish leaks for any stationary equipment using HFCs that pose specified levels of risk. This bill establishes state standards for the recapturing of HFCs.

Writing in support of the bill, the California Product Stewardship Council notes the federal government “has established standards for reclaiming and reuse of HFCs, but there is no state equivalent standard should the federal government suspend or revoke their standard. AB 663 creates necessary protection in order to protect our environment from dangerous HFCs.”

Supporters note that properly reclaimed HFCs can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to further the state’s air quality and GHG emission reduction goals.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 7, 2025

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Isaac G. Bryan, Chair

ABPCA Bill Id:AB 663 (

Author:McKinnor) – As Amended Ver:March 28, 2025

SUBJECT: Hydrofluorocarbon gases: sale and distribution prohibition: exemptions

SUMMARY: Establishes standards for the allowable use of certified reclaimed refrigerants, as defined, as an exception to the existing prohibition on the sale or distribution of bulk hydrofluorocarbons (HFCs) that exceed specified global warming potential (GWP) limits.

EXISTING LAW:

1. Existing federal law directs the U.S. Environmental Protection Agency (USEPA) to address HFC emissions by phasing down the production and consumption of HFCs by 85% by 2036. (40 CFR Part 84)
2. Establishes the Air Resources Board (ARB) as the air pollution control agency in California and requires ARB, among other things, to control emissions from a wide array of mobile sources and coordinate, encourage, and review the efforts of all levels of government as they affect air quality. (Health and Safety Code (HSC) 39000, et seq.)
3. Requires ARB to achieve reductions in statewide emissions of methane and HFCs by 40% below 2013 levels by 2030. (HSC 39730.5)
4. Prohibits the sale, lease, rent, or otherwise entering into commerce of any equipment that uses a federally prohibited refrigerant or a refrigerant prohibited by ARB due to risk to human health or the environment. (HSC 39734)
5. Requires the Public Utilities Commission (PUC) to consider developing a strategy for including low-GWP refrigerants in equipment funded by the energy efficiency programs overseen by the PUC and identify opportunities to assess the energy efficiency performance for GWP alternatives for fluorinated gas-based appliances and equipment. (Public Resources Code (PRC) 76002-76004)
6. Establishes the Fluorinated Gasses Emission Reduction Incentive Program to be administered by ARB to promote the adoption of low-GWP refrigerant technologies. (PRC 76008)
7. Prohibits the sale or distribution of bulk hydrofluorocarbons (HFCs) that exceed specified global warming potential (GWP) limits, except for HFCs that are “reclaimed,” and requires ARB to initiate a rulemaking for the adoption of low and ultra-low GWP refrigerant alternatives in California in sectors where it is practicable. (HSC 39735)

THIS BILL:

1. Specifies that definitions in the federal regulations regarding phasedown of HFCs are as the regulation existed on October 1, 2024.
2. Establishes a more detailed definition of “certified reclaimed refrigerant,” meaning a used (recovered) refrigerant that meets all the following criteria:
   1. Has been reclaimed by a USEPA-certified refrigerant reclaimer from a previously operational appliance.
   2. Meets specified specifications for refrigerants in federal regulations, as demonstrated by an analysis conducted to verify that it meets these specifications.
   3. Contains no greater than 15 percent virgin (unused) refrigerant by weight to meet the federal refrigerant specifications, and has documentation prepared by a USEPA-certified refrigerant reclaimer that supports that the reclaimed refrigerant does not exceed the maximum allowable virgin refrigerant content.
3. Is an urgency statute.

FISCAL EFFECT: Unknown

COMMENTS:

1. Background. CO₂ remains in the atmosphere for centuries, which makes it the most critical GHG to reduce in order to limit long-term climate change. However, short-lived climate pollutants (SLCPs) including HFCs, methane, and soot (black carbon), only persist in the atmosphere from a few weeks to 15 years, but have much higher GWP than CO₂, and therefore pose a significant threat to meeting climate goals.

SB 1383 (Lara), Chapter 395, Statutes of 2016, requires reductions of HFCs (also known as F-gases) which are synthetic gases used in refrigeration, air conditioning, insulation foams, solvents, aerosol products, and fire protection. They are primarily produced for use as substitutes for ozone-depleting substances which are being phased out globally. HFCs, on average, have a global warming potential 1600 times that of CO₂ on a 20-year time scale, and are increasing at a more rapid pace than any other GHG in the U.S., and increasing 10-15% annually around the globe. SB 1383 requires reductions of HFCs 40 percent below 2013 levels by 2030.

Class I and Class II refrigerants are Ozone-Depleting Substances (ODS), and Class II ODSs have less ozone depletion potential than Class Is. HFCs were initially developed as Class II alternatives to Class I ODSs due to their lower ozone depletion potential. HFCs are subject to the Montreal Protocol, adopted in 1987 to address the depletion of the ozone layer, which requires incremental HFC phase-out, culminating with complete replacement by 2030.

The US EPA Significant New Alternatives Policy (SNAP) program was established under Section 612 of the FCAA to identify and evaluate substitutes for ozone depleting substances. Under SNAP, US EPA Rules adopted in 2015 effectively banned 38 HFCs across the aerosol, new car air conditioning, retail food refrigeration, and foam blowing sectors, but a 2017 federal court ruling reversed these rules, finding that the FCAA does not authorize the replacement of non ODSs, including some HFCs, to address climate change concerns.

SB 1013 (Lara), Chapter 375, Statutes of 2018, adopted analogous HFC regulations in state law and offers financial incentives to assist businesses with technology transition.

SB 1206 (Skinner), Chapter 884, Statutes of 2022, prohibited the sale or distribution of bulk HFCs that exceed GWP limits of 2,200 by 2025, 1,500 by 2030, and 750 by 2033. SB 1206 requires the use of reclaimed HFCs when replenishing leaks or servicing equipment with HFCs with GWP greater than 750.

1. Author’s statement:

Hydrofluorocarbons have been found to have a dramatic negative impact on air quality and climate change when released into the atmosphere. These gases, called “HFCs,” are used in a variety of applications, including aerosols, refrigeration and air conditioning, among others. Leaks from air conditioning and refrigeration units are a major source of harmful emissions. It is estimated that an average grocery store refrigeration system leaking 25 percent of its total refrigerant charge results in an average of 1,780 metric tons of carbon dioxide equivalent, or emissions from nearly 400 passenger cars.

SB 1206 of 2022 was passed with the intent of furthering the State’s goal to reduce the impact and use of hydrofluorocarbon gases in California. The bill limited the use of HFCs with specified global warming potential in equipment owned or operated by the state by requiring the use of reclaimed HFCs to replenish leaks for any stationary equipment using HFCs that pose specified levels of risk.

Under SB 1383 of 2016, the state is required to reduce short-lived climate pollutants 40 percent below 2013 levels by 2030. SB 1206 of 2022 furthers that goal by placing requirements on stationary system units owned or operated by the State. The issue for small businesses, individuals and the state is they have made an investment in cooling units that use HFCs, and such units have both an economic and performance lifecycle requiring the responsible recapturing of this material to prevent it from harming the environment.

AB 663 would establish state standards for the recapturing of hydrofluorocarbon gases. Properly reclaimed gases can be treated and reused to help avoid the production of new HFCs while also restoring older units toward higher levels of efficiency. As these units reach their lifecycle end, newer technologies utilizing less-damaging materials are available, helping to move toward the state’s air quality and emission reduction goals.

REGISTERED SUPPORT / OPPOSITION:

Support

Hudson Technologies (sponsor)

350 Humboldt: Grass Roots Climate Action
California Product Stewardship Council
Californians Against Waste
Coalition for Clean Air
National Stewardship Action Council

Opposition

None on file

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. /